Inheritance tax reductions in the Valencian Community. Expert legal advice from White-Baos Avocats.

Inheritance rights are often in the eye of the storm. Although originally a state tax, the different regions of Spain have been transferred the ability to establish their own tax reductions, allowances and deductions. This means that it will be the autonomous communities, in practice, which will determine the amount to be paid for this tax. And for this reason, in similar situations (two children inheriting an estate worth €50,000), the amount to be paid in Barcelona or Andalusia can differ considerably. In today’s article we focus on the main discounts you can benefit from in the Valencian Community.

Reduction for degree of kinship:

  • Descendants or adoptees who are minors under the age of 21 can apply a reduction of €100,000 to which they can add an additional €8,000 for each year they are under the age of 21 (The maximum to be reduced is €156,000.)
  • Descendants over 21, surviving spouses or ascendants can deduct €100,000.

Reduction for physical, sensory or mental handicap:

  • A sensory or physical handicap greater than 33% entitles you to a reduction of €120,000. If it is higher than 65%, it will amount to €240,000.
  • For mental disabilities above 33%, the reduction will also be €240,000.

Reduction for the acquisition of different types of companies: Valencian law also provides for a reduction in cases of inheritance of individual companies, family businesses, farms, etc. Although each type of business has different requirements, they all have in common the need to maintain the legacy business for the next 5 years.

Reduction for the acquisition of the habitual residence of the deceased: Probably the most widely implemented reduction. Each heir can deduct 95% of the value of the habitual residence, up to a limit of €150,000. In this case, the limitation of not selling the house for the next 5 years also applies.

Discount for inheritance of Valencian cultural heritage assets

He has two requirements. First, the assets to be inherited must be registered in the General Register of Assets of Cultural Interest or the General Inventory of Cultural Heritage, etc. Second, the heirs must consent to a temporary transfer of assets to certain associations (universities, public entities, non-profit associations). The amount of the reduction will depend on the duration of the sale.

Knowing and applying the deductions provided for by law can represent savings of several thousand euros. At White-Baos, we are experts in inheritance proceedings. Do not hesitate to contact us. We will study your case and give you expert advice to minimize your tax bill.

You may be interested in the following services and items:

Wills and estates of expatriates (British, Irish, etc.) in Spain. Some details on European regulation 650/2012.

How to value properties for inheritance purposes in Spain, calculating the minimum tax value of a property.

Inheriting from an heir who has never accepted a previous inheritance. Save tax in case of double inheritance in Spain. Ius Delationis.

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